Suze Orman, the most listened to financial expert in the world, pulled no punches this past weekend as she served up tough financial medicine to seminar attendees, scolded employers for not providing pensions for their employees and told Bahamians to get real about their finances. It was a packed house as hundreds turned out to the Meliá Nassau Beach Resort on Saturday for Colonial Pension Services (Bahamas’) Suze Orman seminar.

For two hours, Orman, a two-time Emmy-award winning TV host, New York Times bestselling author and O, The Oprah Magazine contributing editor, shared the story of her humble beginnings; her financial missteps along the way and how she pulled herself up by her white cowboy boot straps to climb her way to the top.

Pensions, and the need to make saving for retirement a top priority, dominated the discussion. With no pension legislation in place, 77 per cent of the population without a retirement plan and less than $1,000 in the average savings account, Orman stressed that everyone needs to start saving now for retirement . She hastened to add that it is never too late.

Orman urged the audience to “put the financial oxygen mask” on themselves first before they put it on anyone else.

She said Bahamians have it “made in the shade” as they don’t have to pay taxes on “money that grows” and are not subjected to income tax.

She also urged the audience to establish their own pension plan regardless of what their employer gives them.

“The good news about not having pension legislation is this: you’re not legislated and any money that you voluntarily put into an individual pension you can take out at any time you want without any penalties whatsoever,” she said. “Let’s just say that your employer does not offer you a pension or if they do offer you a pension for whatever crazy reason, they don’t allow voluntary contributions and I don’t understand why any employer truthfully would offer a pension that doesn’t allow you to put more money on your own into that pension, but maybe they have their reasons. They don’t have to stop you from taking care of yourselves. Every single person has the ability to open up an individual pension for as little as $250 to start.” Orman also had some tough words for employers who don’t offer pensions to their employees.

“Do you think that it’s really saving you money because you don’t have to match their five percent if that’s how the law was passed,” she said. “The biggest expense employers have is turnover in their employees, training of their employees, the productivity of their employees and making sure that their productivity and what their employers do is really good.”

“When people don’t have to be thinking about their own retirement; when people feel like they are being taken care of and they don’t have money problems, they feel more secure. When they feel secure, they feel more powerful . . . when they have more energy they make better employees. When they make better employees, you make more money. So, what are you doing employers out there? By thinking you’re saving money by not giving them a pension, no, you are hurting your own bottom line by not giving them a pension.”

Priscella Murphy, a member of the Nassau chapter of The Links, Incorporated, who operates a home that assists battered women, told Orman the story of how she lost $30,000 when her pension company went belly-up five years ago. She said she felt something deep inside urging her to share her story with Orman during the seminar.

The decision paid off.

Orman invited Murphy on stage and offered her $10,000 to assist her with her retirement. “I’m just so grateful to God. I give him all the glory. I am still in shock. I cannot believe Suze did that. I’m so appreciative,” said Murphy. “I’ve been saving since that time, and thank God I am disciplined, but this is going to help a great deal.”

Murphy wasn’t the only big winner.

Thelma Murphy also won Colonial Pension Services (Bahamas’) $5,000 door prize. The money will be invested in a pension account.

“I am so elated and full of butterflies. This is just awesome and to think that I came at the last minute. I just decided to come and bought the ticket inside the foyer,” she said. “My job where I work there’s a pension plan there and I am vested in that pension plan. I have been watching Suze from the time she came on the scene from the Oprah show and I have a couple of her books that I read. Every time I see Suze on the television I sit and watch and you think do these things apply to us in this country. You watch her, get some tips and learn and see how you can apply some of them to yourself.”

She added, “This is the best $35 I’ve spent so far and I’m hitting that age for retirement real soon, so I’m on my way.”

Throughout her seminar, Orman also stressed that the goal of money is not to impress people, but to be secure.

“Power attracts money. Powerlessness repels it,” she stressed throughout her two-hour lecture. She urged the audience not to spend money they don’t have and said they should not charge their credit cards and then simply pay the minimum.

“Debt makes you powerless, especially credit card debt. It’s a sign that you’re living beyond your means. Credit card debt is bondage and you will never have financial freedom if you have bondage. So, the first move in a financial plan is if you have credit card debt, especially at an 18 percent interest rate . . . is to get yourself out of credit card debt, ” she said.

“When you feel less than, you spend more than. Self worth equates to net worth. And when you have lack of self worth, when you feel less than you will try to fill that hole up inside of you with things that you buy. But nothing that you buy could ever fill you up. If you don’t have money to spend, don’t. Before you spend a penny, ask, is this a want or a need. Get pleasure out of saving rather than spending.”

House Speaker, Dr. Kendal Major, State Minister for Finance, Michael Halkitis and Opposition Deputy Leader Loretta Butler-Turner also sat in the audience as Orman stressed that safeguards and regulations need to be put in place to protect Bahamians when pension companies close down.

 

 

Photos Credit: Patrick Hanna for The Counsellors Ltd.